System and method for optimizing utilization of inventory space for dispensable articles

ABSTRACT

A system and method for optimizing the utilization of inventory space for articles dispensable from an article dispensing machine is provided. A subset of articles in the article dispensing machine may be targeted for removal for various purposes. Based on a list of the subset of articles, the article dispensing machine may move the subset of articles from a storage unit to a predetermined area, such as a merchandising zone of the storage unit or a separate article removal bin. The subset of articles may be removed from the predetermined area, followed by loading of new articles to the predetermined area.

CROSS-REFERENCE TO RELATED APPLICATIONS

This application is a continuation application of U.S. patentapplication Ser. No. 13/414,597, filed Mar. 7, 2012, entitled “SYSTEMAND METHOD FOR OPTIMIZING UTILIZATION OF INVENTORY SPACE FOR DISPENSABLEARTICLES,” and is incorporated by reference herein. This application isalso related to U.S. patent application Ser. No. 13/414,612, filed Mar.7, 2012, entitled “SYSTEM AND METHOD FOR OPTIMIZING UTILIZATION OFINVENTORY SPACE FOR DISPENSABLE ARTICLES,” and is incorporated byreference herein.

TECHNICAL FIELD

This invention relates to a system and method for optimizing utilizationof inventory space for articles dispensable from an article dispensingmachine. More particularly, the invention provides a system and methodfor managing the removal and loading of articles to a storage unit, amerchandising zone, and/or an article removal bin of the articledispensing machine.

BACKGROUND AND SUMMARY OF THE INVENTION

While the invention is often described herein with reference to adigital video disc, Blu-Ray disc, and video game distribution system, anapplication to which the invention is advantageously suited, it will bereadily apparent that the invention is not limited to that applicationand can be employed in article dispensing systems used to distribute awide variety of dispensable articles.

The digital video disc (DVD) player has been one of the most successfulconsumer electronics product launches in history. The market for DVDmovie video, Blu-Ray movie video, and video game rentals is enormous andgrowing. Millions of households have acquired DVDs since they wereintroduced in 1997. In the first quarter of 2003 alone, it was estimatedthat well over three million DVD players were shipped to U.S. retailers.

In 2003, brick-and-mortar stores dominated the movie video and videogame rental landscape in the U.S. Statistics showed that twobrick-and-mortar companies controlled nearly sixty-five percent of thehome video rental business. One element repeatedly cited for success ofcertain brick- and mortar store video rental franchises was perceivedhigh availability of new video releases. Consumers want entertainment ondemand, and through stocking multiple units of each new release,successful brick-and-mortar companies meet this consumer demand.

The foregoing indicates that there is a significant market potential foraligning regular routines of consumers (e.g., shopping, getting coffeeor gas or going to a convenience store) with their DVD, Blu-Ray, andvideo game rental activities.

One improved article dispensing machine is disclosed in commonly ownedU.S. Pat. No. 7,234,609, which is herein incorporated by reference inits entirety. The invention of the U.S. Pat. No. 7,234,609 and theinvention can function as an article dispensing machine-baseddistribution system that will typically have multiple units of each newrelease per article dispensing machine. The dispensing machines of theU.S. Pat. No. 7,234,609 and the invention can stock up to two thousandDVDs, Blu-Ray, video games, or other discs (movies, games or otherentertainment content), making the system competitive with existingbrick-and-mortar video rental superstores.

The dispensing machine and system of the U.S. Pat. No. 7,234,609 and theinvention distinguishes itself from such stores by offering majorbenefits not conventionally offered by such stores, including additionalcross-marketing programs (e.g., promotional rentals for a certain amountof dollars spent at the retail location) and convenience (e.g., openalways).

The dispensing machine of the U.S. Pat. No. 7,234,609 and the inventionyields a competitive advantage in the DVD, Blu-Ray disc, and video gamerental marketplace by offering consumers cross-marketing/promotionalprograms, convenience of selection (e.g., computer-based searches formovies and recommendations based on consumer profiles), and potentiallyextended hours (e.g., 24 hours a day, 7 days a week). The inventionemploys a more cost-effective, convenient platform than brick-and-mortarstores. In addition, with the invention, dispensing machines can besituated in retail locations having high foot traffic, such as at apopular grocery store, restaurant, drug store, and/or other popularretail location.

The dispensing machine of the U.S. Pat. No. 7,234,609 and the inventioncan be operated at a substantial savings over the costs associated withtraditional brick-and-mortar video rental stores. For example, theinvention does not require hourly employees to continuously man thedispensing machines or restock them with inventories.

Unlike brick-and-mortar stores, the dispensing machine of the U.S. Pat.No. 7,234,609 and the invention does not require an on-site storemanager because all operational decisions can be made at a centralizedlocation by a management team officed remote from the retail locations.Unlike brick-and-mortar stores, the dispensing machine of the U.S. Pat.No. 7,234,609 and the invention does not require significant physicalspace. Unlike brick-and-mortar stores, the dispensing machine of theU.S. Pat. No. 7,234,609 and the invention has low operating costsbecause heating or air conditioning is not necessarily required for thedispensing machines and they consume a relatively low level ofelectrical energy. In addition, the dispensing machine of the U.S. Pat.No. 7,234,609 has low maintenance costs and downtime.

The dispensing machine of the U.S. Pat. No. 7,234,609 and the inventionaddresses the shortcomings of traditional brick-and-mortar stores in aconvenient and cost-effective delivery vehicle having the added bonus ofserving as an effective promotional platform that drives incrementalsales to retail locations. In addition, the dispensing machine of theU.S. Pat. No. 7,234,609 and the invention overcomes these disadvantagesby at least offering more new releases and older selections for anygiven time period, and lower cost per viewing with significantly moreconvenience than Internet-based and pay-per-view services.

The dispensing machine of the U.S. Pat. No. 7,234,609 and the inventionis a fully automated, integrated DVD, Blu-Ray, and video game rentaland/or purchase systems. It preferably incorporates robust, secure,scalable software that provides a fully personalized user experience andreal-time feedback to retail locations and advertisers, scalablehardware that leverages existing technologies such as touch screen,focused audio speakers and video monitors, technology utilizing theInternet through a system website or mobile/consumer electronics deviceapplication. These technologies and others fill long-felt needs in theart and give advantages over conventional video distribution options.The dispensing machine of the U.S. Pat. No. 7,234,609 and the inventionfunctions as much as a promotional platform as it does a rental kiosk.

By utilizing the dispensing machines and the fully-interactive,real-time, linked Internet website or mobile/consumer electronics deviceapplications, consumers can rent one or more DVDs, Blu-Ray discs, videogames, or other entertainment content directly from dispensing machinesas well as indirectly by making a rental reservation through the websiteor application for later pickup at a conveniently located machine. Thesedispensing machines are preferably networked with each other, with theinventory control and/or supply office and with the system website orapplication by phone-line, DSL, wireless network, or other Internetconnection at each retail location. Through this linked network, therental experience for each consumer can be customized based on a profilefor each consumer, such as via personalized home pages and rentalscreens.

The invention allows for optimizing the utilization of inventory spacefor articles dispensable from an article dispensing machine by improvingthe sorting, removal, and loading of the inventory of articles. A listidentifying a subset of articles targeted for removal from the articledispensing machine may be received. The subset of articles may includeat least thinned articles, damaged articles, fraudulent articles, do notrent (DNR) articles, rebalancing articles, and/or a combination of thesesubsets that are to be removed from the article dispensing machine.Further refined subsets of a subset of articles may also be defined. Thesubset of articles may be moved from a non-removable storage unit in thearticle dispensing machine to a predetermined area. The predeterminedarea may include a merchandising zone of the storage unit and/or aseparate article removal bin. Inventory management may then be initiatedthrough the receipt of a command from a field service representative.The field service representative may remove each subset of articles fromthe predetermined area(s) and confirm that the subset of articles wasremoved. New articles may be loaded into the predetermined area by thefield service representative, followed by confirmation that the newarticles have been loaded. The article dispensing machine may move thenew articles from the predetermined area to the storage unit. The statusof each of the articles may be tracked in an inventory database.

The invention has the advantage of quicker and more efficient removalfrom and loading of articles to an article dispensing machine becausethe articles may be removed from and loaded to the same predeterminedarea. Moreover, the wear and tear on mechanics of the article dispensingmachine and downtime due to mechanical breakdowns may be reduced throughuse of the invention. Cost savings due to less downtime, maintenance,and time for removing and loading articles may also result. Otherfeatures and advantages are provided by the following description anddrawings.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 is an illustration of a system for communicating and processinginformation in a network of article dispensing machines and dispensingapparatus.

FIG. 2 is a perspective view of an article dispensing machineconstructed in accordance with the principles of the invention.

FIG. 3 is a partially open perspective view of the article dispensingmachine of FIG. 2.

FIG. 4 is a partially open side elevational view of the articledispensing machine of FIG. 2.

FIG. 5 is a partially open side elevational view of the view of thearticle dispensing machine of FIG. 2 with certain components removed forclarity.

FIG. 6 is a flowchart illustrating operations for optimizing utilizationof inventory space in an article dispensing machine.

FIG. 7 is a flowchart illustrating operations for removing and loadingarticles into inventory space in an article dispensing machine.

FIG. 8 is a flow chart of one embodiment of a process for retrofitting aprevious version of an article dispensing machine.

DETAILED DESCRIPTION OF THE INVENTION

While this invention is susceptible of embodiments in many differentforms, there is shown in the drawings and will herein be described indetail preferred embodiments of the invention with the understandingthat the present disclosure is to be considered as an exemplification ofthe principles of the invention and is not intended to limit the broadaspect of the invention to the embodiments illustrated.

FIGS. 1-5 illustrate an article dispensing machine designated 230.Article dispensing machine 230 is one of a plurality of articledispensing machines included within an article distribution systemhaving a plurality of such machines situated at a plurality of retaillocations. The article dispensing machines of a particular articledistribution system preferably form a network. As such, those machinesare preferably in electrical communication with each other and with acentral server or central controller.

As shown in FIG. 1, each article dispensing machine 230 includes adispensing machine processor 300, also referred to herein as a vendingcontroller, which is connected to a first sensor 270 and a second sensor370, a first motor 251 and a second motor 262 and a user interfacecontrol system 234, collectively referred to as “the peripheraldevices.” The processor is capable of executing various programs toprovide input to and/or receive outputs from the peripheral devices.Suitable processors for such use are known to those of skill in the art.In addition, the processor is operably connected to at least one memorystorage device 281, such as a hard-drive or flash-drive or othersuitable memory storage device.

Article dispensing machine memory storage device 281 can include any oneor a combination of volatile memory elements (e.g., random access memory(RAM, such as DRAM, SRAM, SDRAM, etc.)) and nonvolatile memory elements(e.g., ROM, hard drive, tape, CDROM, etc.). Moreover, article dispensingmachine memory storage device 281 may incorporate electronic, magnetic,optical, and/or other types of storage media. Article dispensing machinememory storage device 281 can have a distributed architecture wherevarious components are situated remote from one another, but are stillaccessed by processor. Article dispensing machine memory storage deviceincludes an article dispensing machine database 282.

The article dispensing machines 230 preferably comprise a network ofmachines in communication with one another. As shown in FIG. 1, in thepreferred configuration, the article dispensing machines 230 arenetworked with one another via a central server or central controller302 in a hub-and-spoke system. However, optionally, the articledispensing machines may be connected and communicate directly with oneanother, and/or subsets of article dispensing machines may communicatewith one another directly as well as with the central server 302.

Generally, in terms of hardware architecture, the central server 302includes a central processor and/or controller, central memory, and oneor more input and/or output (I/O) devices (or peripherals) that arecommunicatively coupled via a local interface. The architecture of thecentral server 302 is set forth in greater detail in U.S. Pat. No.7,234,609, the contents of which are incorporated herein by reference.Numerous variations of the architecture of the central server 302 andthe content provider backend 308 would be understood by one of skill inthe art and are encompassed within the scope of the invention.

The processor/controller is a hardware device for executing software,particularly software stored in memory. The processor can be any custommade or commercially available processor, a central processing unit(CPU), an auxiliary processor among several processors associated withthe server 302, a semiconductor based microprocessor (in the form of amicrochip or chip set), a macroprocessor, or generally any device forexecuting software instructions. Examples of suitable commerciallyavailable microprocessors are as follows: a PA-RISC seriesmicroprocessor from Hewlett-Packard Company, an 80×86 or Pentium seriesmicroprocessor from Intel Corporation, a PowerPC microprocessor fromIBM, a Sparc microprocessor from Sun Microsystems, Inc., or a 68xxxseries microprocessor from Motorola Corporation. The processor may alsorepresent a distributed processing architecture such as, but not limitedto, SQL, Smalltalk, APL, KLisp, Snobol, Developer 200, MUMPS/Magic.

The software in memory may include one or more separate programs. Theseparate programs comprise ordered listings of executable instructionsfor implementing logical functions. The software in memory includes asuitable operating system (O/S). A non-exhaustive list of examples ofsuitable commercially available operating systems is as follows: (a) aWindows operating system available from Microsoft Corporation; (b) aNetware operating system available from Novell, Inc.; (c) a Macintoshoperating system available from Apple Inc.; (d) a UNIX operating system,which is available for purchase from many vendors, such as theHewlett-Packard Company, Sun Microsystems, Inc., and AT&T Corporation;(e) a LINUX operating system, which is freeware that is readilyavailable on the Internet; (f) a run time Vxworks operating system fromWindRiver Systems, Inc.; or (g) an appliance-based operating system,such as that implemented in handheld computers, smartphones, or personaldigital assistants (PDAs) (e.g., PalmOS available from Palm Computing,Inc., Windows CE or Windows Phone available from Microsoft Corporation,iOS available from Apple Inc, Android available from Google Inc.,BlackBerry OS available from Research in Motion Limited, Symbianavailable from Nokia Corp.). The operating system essentially controlsthe execution of other computer programs and provides scheduling,input-output control, file and data management, memory management, andcommunication control and related services.

Steps and/or elements, and/or portions thereof of the invention may beimplemented using a source program, executable program (object code),script, or any other entity comprising a set of instructions to beperformed. When a source program, the program needs to be translated viaa compiler, assembler, interpreter, or the like, which may or may not beincluded within the memory, so as to operate properly in connection withthe operating system (O/S). Furthermore, the software embodying theinvention can be written as (a) an object oriented programming language,which has classes of data and methods, or (b) a procedural programminglanguage, which has routines, subroutines, and/or functions, for examplebut not limited to, C, C++, Pascal, Basic, Fortran, Cobol, Perl, Java,Ada, and Lua.

When article dispensing machine 230 is in operation, the articledispensing machine processor is configured to execute software storedwithin article dispensing machine memory, to communicate data to andfrom the dispensing machine memory, and to generally control operationsof article dispensing machine pursuant to the software. The softwareaspects of the invention and the O/S, in whole or in part, but typicallythe latter, are read by processor, perhaps buffered within theprocessor, and then executed.

When the invention or aspects thereof are implemented in software, itshould be noted that the software can be stored on any computer readablemedium for use by or in connection with any computer related system ormethod. In the context of this document, a computer readable medium isan electronic, magnetic, optical, or other physical device or means thatcan contain or store a computer program for use by or in connection witha computer related system or method. The invention can be embodied inany computer-readable medium for use by or in connection with aninstruction execution system, apparatus, or device, such as acomputer-based system, processor-containing system, or other system thatcan fetch the instructions from the instruction execution system,apparatus, or device and execute the instructions. In the context ofthis document, a “computer-readable medium” can be any means that canstore, communicate, propagate, or transport the program for use by or inconnection with the instruction execution system, apparatus, or device.The computer readable medium can be for example, but not limited to, anelectronic, magnetic, optical, electromagnetic, infrared, orsemiconductor system, apparatus, device, or propagation medium. Morespecific examples (a non-exhaustive list) of the computer-readablemedium would include the following: an electrical connection(electronic) having one or more wires, a portable computer diskette(magnetic), a random access memory (RAM) (electronic), a read-onlymemory (ROM) (electronic), an erasable programmable read-only memory(EPROM, EEPROM, or Flash memory) (electronic), an optical fiber(optical), and a portable compact disc read-only memory (CDROM)(optical). Note that the computer-readable medium could even be paper oranother suitable medium upon which the program is printed, as theprogram can be electronically captured, via, for instance, opticalscanning of the paper or other medium, then compiled, interpreted orotherwise processed in a suitable manner if necessary, and then storedin a computer memory.

For communication with the central server 302, article dispensingmachine 230 is equipped with network communication equipment andcircuitry. In a preferred embodiment, the network communicationequipment includes a network card such as an Ethernet card. In apreferred network environment, each of the plurality of articledispensing machines 230 on the network is configured to use the TCP/IPprotocol to communicate via the network 301. It will be understood,however, that a variety of network protocols could also be employed,such as IPX/SPX, Netware, PPP and others. It will also be understoodthat while a preferred embodiment of the invention is for articledispensing machine 230 to have a “broadband” connection to the network301, the principles of the invention are also practicable with a dialupconnection using a standard modem. Wireless network connections are alsocontemplated, such as wireless Ethernet, satellite, infrared, radiofrequency, Bluetooth, near field communication, and cellular networks.

The central controller 302 communicates with the article dispensingmachine controllers 300 via the network 301. The central controller 302is preferably located at a central station or office that is remote fromthe plurality of article dispensing machines 230. The central controller302 can operate as the server for communicating over the network 301between the plurality of article dispensing machines 230. The centralcontroller 302 receives communications and information from the articledispensing machines 230, and also transmits communications andinformation to the machines 230. For example, when a rental transactionis performed at the article dispensing machine 230, transaction datasuch as the rented title is then transmitted from the machine 230 to thecentral controller 302 via the network 301. It will be understood thatcentral servers in general, such as the central controller 302, areoften distributed. A plurality of central servers/controllers 302 mayoptionally be arranged in “load balanced” architecture to improve thespeed and efficiency of the network. To accomplish the implementation ofmultiple controllers 302, the controllers 302 may be in communicationwith a router/distributor 303.

The central controller 302 is also in communication with a centraldatabase 304. The central database 304 stores information regarding thetransaction network. For example, the central database 304 stores dataregarding the vending inventory at each of the plurality of articledispensing machines 230. The central database 304 also stores salesinformation regarding the sales quantities of the vending merchandisestored in the machines 230. For example, the central database 304 storesinformation regarding the sales totals for each title and for eachmachine 230 vending location. Central database 304 also stores userinformation and rental transaction information, such as user IDs, thedate on which discs are due to be returned, the date on which discs wererented from the machines 230 and a list of valid coupon codes andrestrictions associated with those codes. In certain embodiments,central database 304 also may be configured to store user PINs. Some ofthis information is also preferably stored in article dispensing machinedatabase 282.

Central database 304 is preferably a relational database, although othertypes of database architectures may be used without departing from theprinciples of the invention. For example, the database 304 may be a SQLdatabase, an Access database or an Oracle database, and in any suchembodiment have the functionality stored herein. Central database 304 isalso preferably capable of being shared, as illustrated, between aplurality of central controllers 302 and its information is alsopreferably capable of being transmitted via network 301. It will beunderstood that a variety of methods exist for serving the informationstored in central database 304. In one embodiment, .net and MicrosoftReporting Services are employed, however, other technologies such asODBC, MySQL, CFML and the like may be used.

The central controller 302 and central database 304 are also accessibleby an electronic device 306, which may include a personal computer 102,mobile device 104 (e.g., smartphone, personal digital assistant, etc.),tablet computer 106, video game console 108, television 110, and Blu-Rayplayer 112. The electronic device 306 may be in direct or indirectcommunication with the central controller 302 and/or the centraldatabase 304 through a wired and/or wireless network connection, such asEthernet, Wi-Fi, cellular (3G, 4G, etc.), or other type of connection.As a personal computer 102, the electronic device 306 will be understoodas comprising hardware and software consistent with marketable personaland laptop computers, such as a display monitor, a keyboard, and amicroprocessor. The electronic device 306 may also comprise Internetbrowser software such as Firefox, Internet Explorer, Chrome, or Safari.Using the browser software, a user of the electronic device 306 canaccess a web interface through the central controller 302. Anapplication may also execute on the electronic device 306 that accessesthe central controller 302. To that end, central controller 302preferably comprises web server software such as IIS or Apache. It willbe understood that a variety of web server software and web browsersoftware exists to implement the principles of the invention withoutdeparting therefrom. Through the web browser software or application,the electronic device 306 communicates with the central controller 302and allows the user to login to a central command functionality of thecentral controller 302 and to view and modify data stored in the centraldatabase 304. The browser interface or application also allows the userto perform certain system functions, which will affect the inventory andbehavior of the article dispensing machines 230. The electronic device306 may communicate with the central controller 302 and the centraldatabase 304 using rules and specifications of an applicationprogramming interface (API).

In a preferred embodiment, a financial server 305 is also incommunication with the network 301. It will be understood that a varietyof financial services exist for processing financial information via theInternet and other networks 301. Those services allow for the processingof credit card and debit card information, so that users of the servicesdo not have to interface directly with credit and debit card companies.In FIG. 1, the financial server 305 is illustrated as a single server,although the financial server 305 may comprise an entire sub-network offinancial servers 305 responsible for processing financial information.

As shown in FIG. 2, article dispensing machine 230 includes a machinehousing 232 with front, rear, top, bottom and side panels. The machinehousing 232 is preferably a combination molded fiberglass and sheetmetal cabinet. However, those skilled in the art will appreciate thatthe housing can be constructed from a variety of other suitablematerials and with a variety of other suitable manufacturing techniques.

As shown most clearly in FIG. 2, a user interface portion 234 of housing232 includes a card reader 240, a keypad and/or touch screen 242 and anarticle transfer opening 244. The card reader 240 is preferably designedin known fashion to read magnetically encoded membership and/orcredit/debit cards for authorizing the distribution of articles ofinventory through the article transfer opening 244. Keypad and/or touchscreen 242 permits consumers and/or inventory stocking personnel tocommunicate with the dispensing machine 230 and/or a central officelinked in electrical communication with the dispensing machine. Keypadand/or touch screen 242 also permits consumers and/or inventory stockingpersonnel to enter appropriate commands directed to carrying outspecific machine tasks. It will be appreciated that the optional touchscreen includes a monitor made with known technologies making it capableof being utilized as a user interface for entry of commands designed tocarry out machine tasks. The touch screen 242 may also be capable ofdisplaying a QR (Quick Response) code to a customer. The customer mayread the QR code with a camera on a mobile device or with a dedicated QRcode reader. The QR code can represent a universal resource locator(URL) to access a digital media selection or can represent a referencenumber for use by the customer when contacting customer service, forexample.

Furthermore, it will be appreciated that additional user interfaceportions having additional or even identical user interface componentscould be incorporated within article dispensing machine 230. Forexample, these components could be incorporated on other panels of thehousing 232 of machine 230 so that the machine can be usedsimultaneously by multiple consumers, translating into more efficientdistribution of articles in high traffic areas. Dispensing machine 230also preferably includes speaker units. Known audio technology may beincorporated within dispensing machine 230 to broadcast focused audiodirected to relatively small (e.g., three square feet) locations infront of the machines from speaker units and/or in other designatedlocations at a retail site.

Referring now to FIG. 3 which shows the components positioned in theinterior of dispensing machine 230, the article dispensing machineincludes a non-removable storage unit 248 which may be a carousel-style,cylindrical storage facility having a plurality of compartmentalizedrows 249 defined by circular-shaped storage racks 250 sharing a commoncentral axis. Each of the rows 249 has a plurality of receiving slots orcompartments 369. Each storage rack 250 includes radially extending,angularly separated compartment panels defining article storagecompartments 369 which are designed to receive and retain flat-type packarticles, such as DVD, Blu-Ray disc, and video game disc cases, asdesired. The compartment panels are preferably axially aligned to retainthe opposing sides of DVD, Blu-Ray disc, and video game disc cases atthe top and bottom ends thereof. In that regard, the DVD, Blu-Ray disc,and video game disc cases are preferably retained between successivevertical pairs of storage racks 250. The storage racks 250 arevertically spaced by axially extending support members 254.

A first motor 251, hereinafter referred to as the rotational motor,rotates the storage unit 248 about a vertical axis formed by the drivenshaft 252. As shown in FIG. 4, rotational motor 251 drives a belt 259,which in turn rotates wheels 253 and shaft 252 to which the storageracks 250 are attached.

As shown in FIGS. 3 and 5, a selector arm 256 is adjacent the storageunit 248. The selector arm 256 is connected to a conveying belt 258carried by rollers 260, which are preferably positioned proximate to thetop and the bottom of the article dispensing machine housing. At leastone of the rollers 260 may be driven by a second motor 262, hereinafterreferred to as the selector arm motor, to provide for vertical movementof selector arm 256 along a vertical axis generally parallel to thevertical axis of the storage device. Alternatively, the selector armmotor 262 may be positioned on the selector arm 256. In a preferredembodiment, the motors 251, 262 are stepper motors that are capable ofaccurately controlling the movement and position of thecompartmentalized storage unit 248 and the selector arm 256,respectively.

Referring now to FIG. 5, the vending apparatus 230 is equipped with afirst sensor 270 for sensing objects stored in the inventory of theapparatus. The first sensor is preferably mounted on the selector arm256. A variety of forms of sensors are practicable with the inventionfor use as the first sensor without departing from the principlesthereof, including proximity sensors, proximity sensors, an opticallaser scanner, a magnetic scanner, an optical bar code reader, anultraviolet optical scanner, a radio frequency sensor and an infraredoptical scanner. The vending apparatus 230 is further equipped with asecond sensor 370 capable of reading information attached to the objectsstored in the inventory of the apparatus. The second sensor 370 ispreferably, as illustrated, mounted on the selector arm 256. A varietyof forms of sensors are practicable with the invention for use as thesecond sensor without departing from the principles thereof, includingan optical laser scanner, a magnetic scanner, an optical bar codereader, an ultraviolet optical scanner, a radio frequency sensor and aninfrared optical scanner.

The selector arm 256 comprises a picker device 264 which is capable ofremoving a DVD, Blu-Ray disc, or video game disc from the compartments369. The selector arm 256 may further comprise a conveyor belt 374,which contacts one of the media products in one of the compartments 369and conveys the product to the article transfer opening 244 whereby itis delivered to a user on the exterior of the article dispensing machine230. The conveyor 374 is driven by a conveyor motor 372.

A system and method for calibrating the selector arm controller isdisclosed in commonly owned U.S. Patent Application, Publication No.2006/0254832, which is herein incorporated by reference in its entirety.

Generally, during the normal operation of the article dispensingmachine, each article of inventory dispensed from a dispensing machineis preferably scanned by the second sensor 370 and an electronic recordis created indicating the consumer who rented and/or purchased themedia. In addition, articles of inventory returned to a dispensingmachine by a customer and inserted into the article transfer opening 244thereof are preferably scanned by the second sensor 370 and identifiedby the dispensing machine (for example with a bar code reader or scannerin electronic communication with the dispensing machine controller,positioned proximate the media dispending/return opening) along with anidentification of its later stored position on the storage device.

These electronic records can be shared among dispensing machines withina network thereof, and can also be shared with a centralized office viathe Internet or any other electronic data communication link. Theseelectronic records can be used to ensure that the inventory process iscarried out efficiently and accurately.

Part of the storage unit 248 may be designated as a merchandising zone380 for implementing the invention related to optimizing utilization ofinventory space of the article dispensing machine 230, as describedbelow. A predetermined number of article storage compartments 369 ineach of the storage racks 250 that make up the storage unit 248 may bepart of the merchandising zone 380. Color-coded rods 382, in oneembodiment, may delineate the merchandising zone 380 so that inventorystocking personnel and/or field service representatives can quickly andeasily identify the merchandising zone 380. Other locators and/orindicators may be utilized to identify and define the merchandising zone380. The merchandising zone 380 may hold articles that have beentargeted for removal prior to the physical removal of the articles fromthe article dispensing machine 230. New articles may also be loaded intothe merchandising zone 380. In one embodiment, the merchandising zone380 may consist of a quadrant of each of the storage racks 250. Themerchandising zone 380 may be included as any portion or all of thestorage unit 248 and/or one or more storage racks 250. The number ofcompartments 369 included in the merchandising zone 380 may vary. Insome embodiments, some or all of one or more of the storage racks 250 ofthe storage unit 248 may be designated as the merchandising zone 380. Ifthe entirety of one or more storage racks 250 is designated as themerchandising zone 380, these designated storage rack(s) 250 may belocated at an optimal height of the storage unit 248 to facilitateeasier access for field service representatives. For example, themerchandising zone 380 may be the top-most storage rack 250 so that thefield service representative, instead of a storage rack 250 locatedlower in the storage unit 248 so that the field service representativewould not have to bend or crouch down to access the merchandising zone380.

Furthermore, an article removal bin 384 may be located at the bottom ofthe article dispensing machine 230 for collecting media articles forremoval. Media articles moved into the article removal bin 384 mayinclude damaged articles, fraudulent articles, or DNR articles that areno longer eligible for rental or sale. In one embodiment, thinnedarticles may be moved into the article removal bin 384. Damagedarticles, fraudulent articles, DNR articles, thinned articles, and otherstatuses of media articles are detailed below. The inventory stockingpersonnel or field service representatives may physically remove themedia articles from the article removal bin 384 when inventorymanagement of the article dispensing machine 230 is performed, asdescribed below. In one embodiment, the article removal bin 384 may bean open bin that articles being removed may be dropped into. In otherembodiments, the article removal bin 384 may include slots and/orcompartments for the articles being removed. The article removal bin 384may include an incline to improve and optimize the loading of articlesinto the article removal bin 384.

The article removal bin 384 and/or the use of additional storage racks250 of the storage unit 248 can significantly increase the inventorycapacity of the article dispensing machine 230. A previous version of anarticle dispensing machine may have an inventory capacity of 710 mediaarticles, of which 80 media articles are unavailable for rental or saleto a customer. Accordingly, 630 media articles would be available forrental of sale to a customer in this previous version. The inventionallows for installation and use of the article removal bin 384 and/orone or more additional storage racks 250 in place of the inventory spacepreviously used for the 80 media articles that are unavailable forrental or sale.

In one embodiment, an additional storage rack 250 of the storage unit248 may allow storage of 87 additional media articles that are availablefor rental or sale to a customer, and an article removal bin 384 mayallow storage of 60-100 additional media articles that are not availablefor rental or sale to the customer. The overall inventory capacity ofthe article dispensing machine 230 in this embodiment may therefore beincreased from 710 to 777-817 media articles, an increase of 9.4-15%. Inthis embodiment, the number of media articles available for rental orsale may be increased from 630 to 717 media articles, an increase of13.8%.

In another embodiment, an article removal bin 384 may allow storage ofup to 150 media articles that are not available for rental or sale tothe customer. The overall inventory capacity of the article dispensingmachine 230 in this embodiment may be increased from 710 to 780 mediaarticles, an increase of nearly 9.9%, with the 150 additional mediaarticles not available for rental or sale.

The article dispensing machine 230 may include an automated self healerjob that optimizes and maximizes the availability of article inventory.For example, if an article has an unknown identity due to errors orother reasons, the self healer job may attempt to determine the identityof the unknown articles. Unknown articles may initially beunidentifiable if the article dispending machine 230 is unable tocapture identifier information on the article due to problems with thesensor 370, a missing identifier, a misaligned identifier, etc. Theseunknown articles may be placed in the article removal bin 384 and/or themerchandising zone 380, if the unknown articles can be identified and ifit is determined that the unknown articles are to be removed from thearticle dispensing machine 230.

The physical media article in an article dispensing machine 230 mayinclude at least a DVD, Blu-Ray disc, video game disc, or other mediaarticle. Each of the article dispensing machines 230 may operate withoutrequiring continuous connectivity and communication with the centralcontroller 302. In one embodiment, the central controller 302 onlytransmits data in response to communication from an article dispensingmachine 230. For example, an article dispensing machine 230 may attemptto communicate with the central controller 302 following completion ofone or more rental transactions or one or more media article returntransactions. In another embodiment, the article dispensing machine 230continues normal operations and transactions even if communication isinterrupted or cannot be established with the central controller 302.Communication with the central controller 302 may be interrupted if theload at the central controller 302 is above a certain threshold. Forexample, the central controller 302 may direct the article dispensingmachine 230 to only transmit certain types of messages and/ortransactions, e.g., financial authorizations, until the load hasdecreased. In these cases, transaction data can be stored locally in thearticle dispensing machine 230, such as in the article dispensingmachine memory storage device 281, until a predetermined time intervalelapses, when a predetermined number of transactions is reached, untilcommunication with the central controller 302 can be reestablished, orthe load at the central controller 302 has decreased. Once communicationis established with the central controller 302, financial and inventoryinformation can be uploaded and the appropriate servers and databasescan be updated.

In one embodiment, the article dispensing machine 230 can display onlymedia articles which are physically located at the article dispensingmachine 230. In this way, a customer may browse on the user interface234 only the media articles which are in-stock and available to rent atthat article dispensing machine 230. Typically, the article dispensingmachine 230 possesses media information for the media articles that arecurrently located in the article dispensing machine 230. The mediainformation for a media article includes title, actor, director, studio,publisher, plot synopsis, format, description, parental rating,individualized ratings and reviews, popularity, article type, runningtime, genre, cover artwork, or other information. The article dispensingmachine 230 can also store in memory the media information forrecently-rented media articles that are no longer physically stored inthe article dispensing machine 230. The article dispensing machine 230can communicate with the central controller 302 when media informationabout a particular media article is needed. For example, when aparticular media article is returned to an article dispensing machine230 that does not have the corresponding media information for thatparticular media article, the article dispensing machine 230 can querythe central controller 302 and central database 304 for the mediainformation. Once the media information is obtained, the articledispensing machine 230 may display that particular media article on theuser interface 234 as in-stock and available to rent.

In another embodiment, the article dispensing machine 230 can displaymedia articles that are both physically located and not physicallylocated at the article dispensing machine 230. In this embodiment, mediaarticles which are both available and unavailable to rent can bedisplayed. A media article may be unavailable to rent if it is notin-stock or is in-stock but has been reserved for rental. In oneexample, the entire catalog of media articles stored in an inventorydatabase can be displayed on the article dispensing machine 230. Inanother example, a subset of the entire catalog of media articles can bedisplayed on the article dispensing machine 230. The subset of mediaarticles that can be displayed on the article dispensing machine 230 maybe determined, for example, based on geographic location, retaileragreements, contractual obligations, customer rental habits, and othercriteria. The media articles that can be displayed on the articledispensing machine 230 may include recently-rented media articles thatare no longer physically stored in the article dispensing machine 230 ormedia articles that have never been physically in the article dispensingmachine 230. For example, media articles that have never been physicallyin the article dispensing machine 230 may be displayed because thosemedia articles may be available at a nearby article dispensing machine.In this case, those media articles may be displayed to the customer sothat the customer has an option to obtain those media articles from thenearby article dispensing machine 230. In this embodiment, if a customerattempts to rent a media article that is out-of-stock, reserved foranother customer, or otherwise cannot be vended at the particulararticle dispensing machine 230, then that media article can be deemed anunavailable media article.

An embodiment of a process 600 for optimizing the utilization ofinventory space for media articles is shown in FIG. 6. The process 600can result in the management, removal, and loading of media articlesinto space designated for storage of inventory in an article dispensingmachine 230. In some embodiments, the space in the article dispensingmachine 230 may have been previously empty, unused, or otherwiseunavailable for storing article inventory, for example, and theinvention allows for optimal usage of this space. Increased capacity tostore media articles that are rentable or sellable to customers from thearticle dispensing machine 230 may result, as described above. Acustomer may rent and/or purchase one or more media articles from anarticle dispensing machine 230 during a transaction. Multiple copies ofthe same media article may be present in an article dispensing machine230 so that the media article is available to multiple customers. Forexample, a new release of a DVD or Blu-Ray disc of a recent movie mayhave a higher demand than a DVD or Blu-Ray disc for an older movie. Inthis case, more copies of the new release may be stocked in the articledispensing machine 230 in anticipation of the higher demand.

The operator of the article dispensing machine 230 may have agreementswith the producers, manufacturers, distributors, and/or developers ofthe media articles that dictate the manner, location, pricing, duration,disposal, and/or other parameters related to the rental and sale of themedia articles. Some agreements may include a transaction eligibilitycutoff date that specifies the last date that a media article may berented or sold. For example, the operator may have an agreement with amovie studio that allows DVDs and Blu-Ray discs from that movie studioto be rented for a certain time period, after which the DVDs and Blu-Raydiscs must be returned or destroyed. As another example, the operatormay have an agreement with a video game developer that allows a certainnumber of video game discs from that developer to be stocked for rentalor sale in an article dispensing machine 230 for a certain time period,after which a lower number of video game discs may be stocked. Someagreements may specify that the removal of media articles from articledispensing machines 230 at certain dates prior to the transactioneligibility cutoff date may result in reduced costs. The process 600 maytherefore be used in cases where an agreement dictates the removal ofmedia articles from the article dispensing machine 230, e.g., if mediaarticles must be returned, destroyed, reduced, or otherwise removed.

Media articles may also be removed from the article dispensing machine230 using the process 600 if the operator makes a business decision toreduce or eliminate the availability of a media article for rent orpurchase, such as if a media article has rentals or sales that are belowexpectations, or if a media article is an older title. For example,analysis of sales and rental data stored in the database 304 maydetermine how long a media article has been stored in inventory. Asanother example, a profitability analysis of sales and rental data maydetermine which media articles are selling well and which are not. Othermedia articles may be removed from the article dispensing machine 230using the process 600 if the media articles are damaged, fraudulent, orfor other reasons. Through use of the process 600, some or all of themedia articles stored in the article dispensing machine 230 can beautomatically sorted into one or more predetermined areas prior to anymanual interaction with a field service representative.

Media articles that may be removed from an article dispensing machine230 may fall into various categories, including thinned articles,damaged articles, fraudulent articles, rebalancing articles, and do notrent (DNR) articles. A particular media article may be designated as athinned article if the operator of the article dispensing machine 230wishes to reduce the stocked number of the particular media article,such as when the transaction eligibility cutoff date is upcoming or as aresult of the operator's business decision, e.g., rentals or sales arebelow projections. A subset of thinned articles may be designated asrebalancing articles if the operator of the article dispensing machine230 wishes to place particular media articles in another articledispensing machine 230. Accordingly, thinned articles may be removedfrom the article dispensing machine 230 prior to the expiration of thetransaction eligibility cutoff date or other specified date using theprocess 600.

If a particular media article becomes damaged or otherwise unplayable,the media article may be designated as a damaged article may be removedfrom the article dispensing machine 230 so that a customer cannot rentor purchase it. Media articles that have been reported as beingfraudulent can be designed as fraudulent articles that may also beremoved from the article dispensing machine 230 so that a customercannot rent or purchase it.

Furthermore, a particular media article may be designated as a do notrent (DNR) article if the transaction eligibility cutoff date for theparticular media article has passed so that the particular media articleis not eligible to be rented or sold. In some cases, an agreement mayspecify penalties if a DNR article is not removed from an articledispensing machine 230 by the cutoff date. The agreement or contract mayspecify that DNR articles must be destroyed or returned to adistributor, studio, etc. There may be one or more categories of DNRarticles that specify the relative urgency of whether a particular mediaarticle needs to be removed from the article dispensing machine 230.

New media articles may also be loaded into the article dispensingmachine 230 to replace the media articles which have been removed. Thenew media articles may include, for example, new releases of DVDs,Blu-Ray discs, and video game discs for rental or sale to customers.Media articles of previously released media content, such as oldermovies or video games, may also be loaded into the article dispensingmachine as new media articles. One or more copies of a particular mediaarticle may be loaded as new media articles. Inventory space for thesenew media articles that can be rented or sold to customers may beincreased by moving media articles to the merchandising zone 380 and/orarticle removal bin 384, which are ultimately physically removed fromthe article dispensing machine 230.

At step 602, a list that identifies a subset of media articles targetedfor removal may be received at an article dispensing machine 230. Thelist may include thinned articles (including rebalancing articles),damaged articles, fraudulent articles, and/or DNR articles that arespecified by the operator of the article dispensing machine 230. Asdescribed above, these media articles may be targeted for removal basedon agreements and/or business decisions related to the reduction ofstock for the particular media articles. The list of the subset of mediaarticles may be in an XML format or other appropriate format. Thearticle dispensing machine 230 may receive the list from the centralcontroller 302. The subset of media articles may have been manually orautomatically selected for the list based on analysis of sales andrental data, for example. The subset of media articles identified in thelist may be moved from the storage unit 248 to the merchandising zone380 and/or the article removal bin 384, depending on various factors.These factors may include how the media articles have been designated,the available space in the merchandising zone 380, and the availablespace in the article removal bin 384.

Media articles may be moved to the merchandising zone 380 from otherareas of the storage unit 248 at step 604. In one embodiment, thinnedarticles (including rebalancing articles) may be moved to themerchandising zone 380 at step 604. In another embodiment, any mediaarticle targeted for removal, including thinned articles, damagedarticles, fraudulent articles, and/or DNR articles may be moved at step604 from the other areas of the storage unit 248 to the merchandisingzone 380. The picker device 264 may move a media article from acompartment 369 in a non-merchandising zone area of the storage unit 248to a compartment 369 in the merchandising zone 380. In one embodiment,media articles that are placed in the merchandising zone 380 may beplaced from top to bottom and left to right, starting with a firststorage rack 250. The media articles moved at step 604 may be based onthe list of the subset of media articles received at step 602. Themoving of thinned articles and/or other media articles at step 604 maybe known as a thin job that can be executed on a periodic basis. Forexample, the thin job may be executed on a daily basis following ascheduled reboot of the article dispensing machine 230. If the thin jobis successfully executed at step 606, then the process 600 continues tostep 608.

However, if the thin job is not successfully executed at step 606, suchas if an error code is detected due to a mechanical or software issue,then the article dispensing machine 230 may enter a maintenance mode atstep 618. In this case, the article dispensing machine 230 may remain inthe maintenance mode and not allow any customer transactions untilserviced by a field service representative. At step 606, a message maybe transmitted to the central controller 302 that the thin job eithersuccessfully executed or did not successfully execute. A thin job maynot successfully execute due to an error code or if the articledispensing machine 230 is loaded with new media articles before the thinjob has completed. In this case, the media articles that did not getmoved to the merchandising zone 380 by the initial thin job may be movedto the merchandising zone 380 by a later-executed thin job.

If a media article that is targeted for removal is not present in thearticle dispensing machine 230 when the thin job is executed at step 604but is later returned by a customer, that media article may be placed ina non-merchandising zone area of the storage unit 248 upon return. Themedia article may then be moved to the merchandising zone 380 when thenext thin job is executed. Furthermore, thinned and other media articlesin the merchandising zone 380 may be rented or purchased by a customerfrom the article dispensing machine 230.

At step 608, media articles may be moved to the article removal bin 384from the storage unit 248. In one embodiment, DNR articles, damagedarticles, and/or fraudulent articles may be moved from anon-merchandising zone portion of the storage unit 248 and/or to thearticle removal bin 384 at step 608. In another embodiment, thinnedarticles may be moved from a non-merchandising zone portion of thestorage unit 248 to the article removal bin 384 at step 608. In afurther embodiment, media articles that had previously been moved to themerchandising zone 380 at step 604 may be moved from the merchandisingzone 380 to the article removal bin 384 at step 608. The media articlesplaced in the article removal bin 384 may be based on the list of thesubset of media articles received at step 602.

The picker device 264 may retrieve the media article from a compartment369 in the storage unit 248 to the article removal bin 384. The movingmedia articles may be known as a load bin job that can be executed on aperiodic basis. For example, the load bin job may be executed on a dailybasis following execution of the thin job at step 604. If the load binjob is successfully executed at step 610, then the process 600 continuesto step 612. However, if the load bin job is not successfully executedat step 610, such as if an error code is detected due to a mechanical orsoftware issue, then the article dispensing machine 230 may enter amaintenance mode at step 618. In this case, the article dispensingmachine 230 may remain in the maintenance mode and not allow anycustomer transactions until serviced by a field service representative.A maximum number of media articles that are allowed to be moved into thearticle removal bin 384 may be defined. Accordingly, the number of mediaarticles loaded into the article removal bin 384 may be tracked so thatthe article removal bin 384 is not overloaded.

The media articles moved into the article removal bin 384 may be markedin a database with an in-bin status at step 612. The database mayinclude an inventory database within the article dispensing machinedatabase 282, central database 304, or other database. Marking thestatus of the articles in the database assists in keeping track of thelocation of each piece of inventory. Each article may have a uniqueidentifier, such as a barcode, serial number, radio frequencyidentification (RFID) tag, or other identifier, that identifiescharacteristics of the article, such as a title, type, and otherinformation. When the media articles are moved into the article removalbin 384, their unique identifiers may have been read by the sensor 370,for example.

As discussed above, media articles may be categorized with a variety ofstatuses, including in-bin, thinned, damaged, fraudulent, DNR, andunknown. Media articles may also be categorized with other statuses,whether they are physically located in the article dispensing machine230 or located elsewhere. These other statuses include in-kiosk,removed, missing, rented, wrong title, received, sold, and destroyed.The in-kiosk and removed statuses are discussed further below. A mediaarticle designated as a missing article is a particular media articlethat was expected to be one location or slot in the storage unit 248 butis not actually located there. The location or slot in the storage unit248, in this case, may be empty or contain another media article. Arented article is a media article that has been rented to a customer. Amedia article that is designated as a wrong title article is aparticular media article that has been reported to have the wrong titleassociated with it in the inventory database. Wrong title articles inthe article dispensing machine 230, if present, may also be targeted forremoval. A received article is a media article that has been reported asbeing received by the warehouse or distribution center following removalfrom the article dispensing machine 230. A sold article is a mediaarticle that has been sold out of the inventory of the articledispensing machine 230. A media article designated as a destroyedarticle is a particular media article that has been destroyed, includingthose destroyed pursuant to an agreement.

At step 614, it is determined whether a command for initiating inventorymanagement of the article dispensing machine 230 has been received. Inone embodiment, inventory management may be initiated by a field servicerepresentative who logs into the article dispensing machine 230 usingthe user interface 234 for the purpose of removal and loading of mediaarticles. If inventory management has not been initiated at step 614,then the process 600 returns to step 614 to await the initiation ofinventory management. In one embodiment, the process 600 can return tostep 602 to receive another list of a subset of media articles that aretargeted for removal, as described above. However, if inventorymanagement has been initiated at step 614, then inventory management canbe performed at step 616. During inventory management, the userinterface 234 may display instructions, graphics, and/or otherinformation to assist the field service representative in the removaland loading of media articles from the article dispensing machine 230.For example, the user interface 234 may display and/or indicate aparticular storage rack 250 and/or compartment 369 corresponding to amedia article that is to be removed or where a media article is to beloaded.

An embodiment of step 616 for performing inventory management is shownin more detail with reference to FIG. 7. At step 702 of FIG. 7, it isdetermined whether any media articles have been moved into the articleremoval bin 384. Thinned articles, DNR articles, damaged articles,and/or fraudulent articles may have been placed in the article removalbin 384 at step 608, as described above. If no media articles have beenmoved into the article removal bin 384, then at step 706, the articledispensing machine 230 awaits receipt of confirmation that there are nomedia articles in the article removal bin 384. The field servicerepresentative may interact with the user interface 234 to confirm thatthere are no media articles in the article removal bin 384 at step 706.However, if media articles have been moved into the article removal bin384, then at step 704, the article dispensing machine 230 awaits receiptof confirmation that the media articles have been removed from thearticle removal bin 384. The field service representative may remove themedia articles from the article removal bin 384 then interact with theuser interface 234 to confirm that the media articles have been removedfrom the article removal bin 384 at step 704.

Next, it is determined at step 708 whether media articles have beenmoved into the merchandising zone 380. Thinned articles and/or otherarticles targeted for removal may have been moved into the merchandisingzone 380 from other areas of the storage unit 248 at step 604, asdescribed above. If no media articles have been moved into themerchandising zone 380, then the process 616 is complete at step 728.However, if media articles have been moved into the merchandising zone380, then the process 616 continues to step 710. At step 710, thestarting and/or ending locations of the thinned and other media articlesin the merchandising zone 380 may be indicated on the user interface 234so that the field service representative is informed of which mediaarticles to remove from the article dispensing machine 230. Othervisual, audio, and/or tactile indicators may be used to inform the fieldservice representative of the locations of the media articles to beremoved. In one embodiment, the picker device 264 may remove some of theinitial media articles from the merchandising zone 380 so that the fieldservice representative knows the beginning portion of which mediaarticles to remove. The remainder of the media articles may subsequentlybe removed from the merchandising zone 380 by the field servicerepresentative. In some embodiments, there may be media articlestargeted for removal that are stored outside of the merchandising zone380 because the merchandising zone 380 is full. In this case, thearticle dispensing machine 230 may automatically dispense these mediaarticles through the article transfer opening 244. In other embodiments,the motors 251 and 262 may be turned off at step 710 so that the fieldservice representative may manually and freely rotate the storage unit248 to access the merchandising zone 380.

The article dispensing machine 230 awaits receipt of confirmation thatthe media articles in the merchandising zone 380 have been removed atstep 712. The field service representative may interact with the userinterface 234 to confirm that the media articles have been removed fromthe merchandising zone 380 at step 712. In one embodiment, the articledispensing machine 230 may automatically determine whether the mediaarticles have been removed from the merchandising zone 380 by using thesensor 270, for example. Once the media articles have been removed fromthe merchandising zone 380, new media articles may be loaded into themerchandising zone 380 by the field service representative. The startingand/or ending locations for where to load the new media articles may beindicated on the user interface 234 at step 714. Other visual, audio,and/or tactile indicators may be used to inform the field servicerepresentative of the locations where to load the new media articles. Inone embodiment, new media articles may be loaded into the merchandisingzone 380 from bottom to top and right to left, starting with a laststorage rack 250. New media articles may include multiple copies of newreleases and/or other media articles that will be available for rentalor purchase by customers.

It is possible that there may be more new media articles to load intothe merchandising zone 380 than available slots in the merchandisingzone 380. In this case, the field service representative may enter amaintenance mode of the article dispensing machine 230. In oneembodiment, the remaining new media articles that need to be loaded intothe article dispensing machine 230 may be individually loaded throughthe article transfer opening 244 so that these media articles can bestored in other portions of the storage unit 248. In another embodiment,another thin job may be manually executed to remove further mediaarticles from the inventory of the article dispensing machine 230 tomake room for the new media articles.

After the new media articles are loaded into the merchandising zone 380,the article dispensing machine 230 awaits receipt of confirmation thatthe new media articles have been loaded at step 716. The field servicerepresentative may interact with the user interface 234 to confirm thatthe new media articles have been loaded into the merchandising zone 380at step 716. In one embodiment, the dispensing machine 230 mayautomatically determine whether the new media articles have been loadedinto the merchandising zone 380 by using the sensor 270, for example.The new media articles that have been loaded may be marked in a databasewith an in-kiosk status at step 718. The database may include aninventory database within the article dispensing machine database 282,central database 304, or other database.

The new media articles may be moved from the merchandising zone 380 toother areas of the storage unit 248 at step 720. The moving of new mediaarticles at step 720 may be known as a merchandising zonesynchronization job. The field service representative may initiate orschedule the merchandising zone synchronization job. In one embodiment,the merchandising zone synchronization job may be remotely initiatedfrom the central controller 302. In another embodiment, the motors 251and 262 may be activated so that the merchandising zone synchronizationjob can be executed, if the motors 251 and 262 had been turned off atstep 710. New media articles may be rented or purchased by customerswhen the new media articles are in the merchandising zone 380, prior toor during execution of the merchandising zone synchronization job. Acustomer may also rent or purchase the new media articles afterexecution of the merchandising zone synchronization job when the newmedia articles have been moved to the non-merchandising zone area of thestorage unit 248.

In some embodiments, the merchandising zone synchronization job may movesome or all of the new media articles to optimized receiving slots 369and/or optimized storage racks 250 that are nearest to the location ofthe picker device 264. In this way, the picker device 264 may have nothave to travel as far to access a particular new media article when acustomer rents or buys that new media article. The new media articlesmay include new releases or other titles with rental or sales volumesthat are anticipated to be higher than for other media articles, forexample. There may be less wear and tear on the picker device 264 andassociated machinery because the picker device 264 would not have totravel as far to access these more popular media articles. In addition,a customer transaction may be completed more quickly. For example, thepicker device 264 may typically be located near the article transferopening 244, particularly following a customer transaction. In thiscase, placing new media articles that are likely to be rented or boughtin the optimized receiving slots 369 and/or the optimized storage racks250 that are nearest to the location of the picker device 264 will speedcustomer transactions involving these media articles.

If the merchandising zone synchronization job is not successful at step722, such as if an error code is detected due to a mechanical orsoftware issue, then the article dispensing machine 230 may enter amaintenance mode at step 726. The article dispensing machine 230 mayremain in the maintenance mode and not allow any customer transactionsuntil serviced by a field service representative. However, if themerchandising zone synchronization job is successful at step 722, thenthe process 616 continues to step 724. At step 724, the thinned articlesand/or other media articles that had been removed from the merchandisingzone 380 may be marked in a database with a removed status. In someembodiments, the thinned articles and/or other media articles may bemarked with a removed status at step 712 when the field servicerepresentative has confirmed the removal of the thinned articles fromthe merchandising zone 380. A media article with a removed status hasbeen physically removed from the article dispensing machine 230. Aninventory report may be transmitted from the article dispensing machine230 to the central controller 302 after a successful execution of themerchandising zone synchronization job. Following step 724, the process616 is complete at step 728.

In one embodiment, a merchandising zone unload job may be executed on aperiodic basis to unload thinned and/or other media articles from themerchandising zone 380. The merchandising zone unload job may beexecuted in parallel with a thin job so that a media article may bemoved from the merchandising zone 380 to a non-merchandising zone of thestorage unit 248, then another media article may be moved into themerchandising zone 380 to replace the previously moved media article.Some or all of the merchandising zone 380 may be reserved for thinned ornon-removed articles unless that space is needed for other purposes.

The thin job, load bin job, merchandising zone synchronization job,merchandising zone unload job, self healer job, and other jobs that areperiodically and/or automatically executed by the article dispensingmachine 230 may each have a priority assigned to them. The priority maydetermine whether or not the job is executed at a scheduled time, basedon whether the article dispensing machine 230 is performing other tasks.For example, if a customer is involved in a transaction at the articledispensing machine 230 at the time when a thin job is scheduled to beexecuted, the transaction can be allowed to continue and the thin jobwill execute after the transaction is completed. Jobs may also beinterruptible and resumable so that other jobs or actions with higherpriorities may be executed. In this way, jobs with longer durations maybe interrupted and/or not started to allow higher priority jobs withshorter durations to execute, such as rental or return transactionsinvolving a customer.

A process 800 for retrofitting a previous version of an articledispensing machine to incorporate the invention described above is shownin FIG. 8. The process 800 may result in the installation and additionof an article removal bin 384 to the article dispensing machine 230and/or one or more additional storage racks 250 to the storage unit 248to increase the overall inventory capacity of the article dispensingmachine 230. As seen in FIG. 4, the article removal bin 384 may beinstalled in the bottom portion of the article dispensing machine 230 sothat the selector arm 256 and the picker device 264 may deposit mediaarticles targeted for removal in the article removal bin 384. Anadditional storage rack 250 may be installed in the storage unit 248 andbe rotated along with the other storage racks 250 by the driven shaft252. The additional storage rack(s) 250 (not shown) may be installed atthe top or the bottom of the exiting storage racks 250, for example.

At step 802, any existing apparatus and/or mechanisms in the articledispensing machine 230 may be removed or cleared from the area(s) wherethe article removal bin 384 and/or the additional storage rack 250 areto be installed. For example, obsolete or unused storage apparatuses,wiring, and/or other mechanisms may be removed or cleared from thebottom interior of the article dispensing machine 230. The existingapparatus and/or mechanisms may also be secured so that they do notinterfere with installation of the article removal bin 384 and/oradditional storage rack 250, e.g., bundling wires together and securingthe bundle to a rail. At step 804, it may be determined whether one ormore additional storage rack(s) 250 are to be installed in the articledispensing machine 230. An additional storage rack 250 may not beinstalled if there is insufficient space in the article dispensingmachine 230 or if a business decision has been made to not install anadditional storage rack 250, for example. If additional storage racks250 are not to be installed at step 804, then the process 800 continuesto step 810, detailed below.

However, if additional storage racks 250 are to be installed at step804, then at step 806, the additional storage rack(s) 250 may beinstalled. The additional storage rack(s) 250 may be substantiallysimilar to an existing storage rack 250 in the storage unit 248, and maybe connected to the driven shaft 252 so that the entire storage unit 248rotates together. In one embodiment, the additional storage rack(s) 250and the existing storage racks 250 may rotate independently of oneanother. At step 808, indicators identifying the merchandising zone 380may be installed on some or all of the storage racks 250, including thenewly-installed additional storage rack(s) 250. The indicators mayinclude color-coded rods 382, for example, as shown in FIG. 5. Theindicators may delineate the merchandising zone 380 so that inventorystocking personnel and/or field service representatives can quickly andeasily identify the merchandising zone 380.

At step 810, it may be determined whether one or more article removalbins 384 are to be installed in the article dispensing machine 230. Anarticle removal bin 384 may not be installed if there is insufficientspace in the article dispensing machine 230 or if a business decisionhas been made to not install an article removal bin 384, for example. Ifan article removal bin 384 is not to be installed at step 810, then theprocess 800 continues to step 814, detailed below. However, if anarticle removal bin 384 is to be installed at step 810, then at step812, the article removal bin 384 may be installed. The article removalbin 384 may be placed in the bottom interior of the article dispensingmachine 230 and may be secured to the article dispensing machine 230 sothat it is stationary but removable. More than one article removal bin384 may be installed so that media articles in different categories canbe segregated, for example. At step 814, the software and/or firmware ofthe article dispensing machine 230 may be updated so that thenewly-installed article removal bin(s) 384 and/or additional storagerack(s) 250 may be utilized as additional inventory capacity. The updatesoftware and/or firmware may enable the selector arm 256 and the pickerdevice 264 to deposit media articles targeted for removal in the articleremoval bin 384 and merchandising zone 380, for example.

Any process descriptions or blocks in figures should be understood asrepresenting modules, segments, or portions of code which include one ormore executable instructions for implementing specific logical functionsor steps in the process, and alternate implementations are includedwithin the scope of the embodiments of the invention in which functionsmay be executed out of order from that shown or discussed, includingsubstantially concurrently or in reverse order, depending on thefunctionality involved, as would be understood by those having ordinaryskill in the art.

It should be emphasized that the above-described embodiments of theinvention, particularly, any “preferred” embodiments, are possibleexamples of implementations, merely set forth for a clear understandingof the principles of the invention. Many variations and modificationsmay be made to the above-described embodiment(s) of the inventionwithout substantially departing from the spirit and principles of theinvention. All such modifications are intended to be included hereinwithin the scope of this disclosure and the invention and protected bythe following claims.

The invention claimed is:
 1. A method of utilization of inventory spacefor a plurality of articles in an article dispensing machine, thearticle dispensing machine comprising a user interface, a processor incommunication with the user interface, and a non-removable storage unitfor holding the plurality of articles in a plurality of slots, themethod comprising: receiving, at the processor, a list identifying asubset of the plurality of articles, the subset targeted for removalfrom the article dispensing machine, wherein the plurality of articlescomprise consumer goods articles; receiving, at the article dispensingmachine, at least one article from outside of the article dispensingmachine; identifying if the at least one received article matches one ofthe subset of the plurality of articles, using the processor; if the atleast one received article matches one of the subset of the plurality ofarticles, using the processor, causing the article dispensing machine toautomatically move the at least one received article to a predeterminedarea of the article dispensing machine, wherein the predetermined areais reserved for non-consumer inventory management; and using theprocessor, causing the article dispensing machine to automatically moveone or more of the subset of the plurality of articles from a consumerinventory management section of the non-removable storage unit to thepredetermined area.
 2. The method of claim 1, further comprising: aftercausing the article dispensing machine to automatically move the one ormore of the subset of the plurality of articles from the consumerinventory management section of the non-removable storage unit to thepredetermined area, receiving a signal at the processor through the userinterface to initiate inventory management of the article dispensingmachine, wherein the inventory management includes enabling: (1) manualremoval of the subset of the plurality of articles from thepredetermined area to outside of the article dispensing machine, and (2)manual loading of at least one article from outside of the articledispensing machine into the predetermined area.
 3. The method of claim2, further comprising: receiving a load confirmation signal at theprocessor through the user interface, the load confirmation signalindicating that the at least one article has been loaded into thepredetermined area; and subsequent to receiving the load confirmationsignal, using the processor, causing the article dispensing machine toautomatically move the at least one article from the predetermined areato the non-removable storage unit.
 4. The method of claim 1, wherein thepredetermined area comprises a subset of the plurality of slots on oneor more levels of the non-removable storage unit.
 5. The method of claim2, further comprising using the processor, causing the articledispensing machine to automatically indicate, using a picker device, oneor more locations of the subset of the plurality of slots where thesubset of the plurality of articles should be removed from, in responseto receiving the signal.
 6. The method of claim 1, wherein the pluralityof articles comprises a plurality of media articles, the plurality ofmedia articles comprising at least one of a digital video disc, aBlu-Ray disc, or a video game.
 7. A method of utilization of inventoryspace for a plurality of articles in an article dispensing machine, thearticle dispensing machine comprising a user interface, a processor incommunication with the user interface, and a non-removable storage unitfor holding the plurality of articles in a plurality of slots, whereinthe plurality of articles comprise consumer goods articles, the methodcomprising: receiving a signal at the processor through the userinterface to initiate inventory management of the article dispensingmachine, wherein the inventory management includes enabling: (1) manualremoval of a subset of the plurality of articles from a predeterminedarea to outside of the article dispensing machine, the subset targetedfor removal from the article dispensing machine, the predetermined areareserved for non-consumer inventory management, and (2) manual loadingof at least one article from outside of the article dispensing machineinto the predetermined area; transmitting, from the processor to theuser interface, one or more locations of a subset of the plurality ofslots of the predetermined area where the at least one article should beloaded into, in response to receiving the signal; receiving a loadconfirmation signal at the processor through the user interface, theload confirmation signal indicating that the at least one article hasbeen loaded into the one or more locations of the subset of theplurality of slots; and subsequent to receiving the load confirmationsignal, using the processor, causing the article dispensing machine toautomatically move the at least one article from the one or morelocations of the subset of the plurality of slots to the non-removablestorage unit.
 8. The method of claim 7, further comprising receiving, atthe processor, a list identifying the subset of the plurality ofarticles.
 9. The method of claim 7, further comprising using theprocessor, causing the article dispensing machine to automatically movethe subset of the plurality of articles from a consumer inventorymanagement section of the non-removable storage unit to thepredetermined area of the article dispensing machine.
 10. The method ofclaim 7, further comprising receiving a removal confirmation signal atthe processor through the user interface, the removal confirmationsignal indicating that the subset of the plurality of articles has beenremoved from the predetermined area.
 11. The method of claim 7, whereinthe predetermined area comprises the subset of the plurality of slots onone or more levels of the non-removable storage unit.
 12. The method ofclaim 7, further comprising using the processor, causing the articledispensing machine to automatically indicate, using a picker device, theone or more locations of the subset of the plurality of slots where theat least one article should be loaded into, in response to receiving thesignal.
 13. The method of claim 7, wherein the plurality of articlescomprises a plurality of media articles, the plurality of media articlescomprising at least one of a digital video disc, a Blu-Ray disc, or avideo game.
 14. A method of utilization of inventory space for aplurality of articles in an article dispensing machine, the articledispensing machine comprising a user interface, a processor incommunication with the user interface, and a non-removable storage unitfor holding the plurality of articles in a plurality of slots, whereinthe plurality of articles comprise consumer goods articles, the methodcomprising: using the processor, causing the article dispensing machineto automatically move a subset of the plurality of articles from aconsumer inventory management section of the non-removable storage unitto a predetermined area of the article dispensing machine, wherein thepredetermined area is reserved for non-consumer inventory management,the subset targeted for removal from the article dispensing machine;receiving a signal at the processor through the user interface toinitiate inventory management of the article dispensing machine, whereinthe inventory management includes enabling: (1) manual removal of thesubset of the plurality of articles from the predetermined area tooutside of the article dispensing machine, and (2) manual loading of atleast one article from outside of the article dispensing machine intothe predetermined area; and transmitting, from the processor to the userinterface, one or more locations of a subset of the plurality of slotsof the predetermined area where the subset of the plurality of articlesshould be removed from, in response to receiving the signal.
 15. Themethod of claim 14 further comprising receiving, at the processor, alist identifying the subset of the plurality of articles.
 16. The methodof claim 14, further comprising receiving a removal confirmation signalat the processor through the user interface, the removal confirmationsignal indicating that the subset of the plurality of articles has beenremoved from the predetermined area.
 17. The method of claim 14, furthercomprising: receiving a load confirmation signal at the processorthrough the user interface, the load confirmation signal indicating thatthe at least one article has been loaded into the predetermined area;and subsequent to receiving the load confirmation signal, using theprocessor, causing the article dispensing machine to automatically movethe at least one article from the predetermined area to thenon-removable storage unit.
 18. The method of claim 14, wherein thepredetermined area comprises the subset of the plurality of slots on oneor more levels of the non-removable storage unit.
 19. The method ofclaim 14, further comprising using the processor, causing the articledispensing machine to automatically indicate, using a picker device, theone or more locations of the subset of the plurality of slots where thesubset of the plurality of articles should be removed from, in responseto receiving the signal.
 20. The method of claim 14, wherein theplurality of articles comprises a plurality of media articles, theplurality of media articles comprising at least one of a digital videodisc, a Blu-Ray disc, or a video game.
 21. A method of utilization ofinventory space for a plurality of articles in an article dispensingmachine, the article dispensing machine comprising a user interface, aprocessor in communication with the user interface, and a non-removablestorage unit for holding the plurality of articles in a plurality ofslots, wherein the plurality of articles comprise consumer goodsarticles, the method comprising: (a) receiving a signal at the processorthrough the user interface to initiate inventory management of thearticle dispensing machine, wherein the inventory management includesenabling: (1) manual removal of a subset of the plurality of articlesfrom a predetermined area to outside of the article dispensing machine,the first subset targeted for removal from the article dispensingmachine, the predetermined area reserved for non-consumer inventorymanagement, and (2) manual loading of at least one article from outsideof the article dispensing machine into the predetermined area;transmitting, from the processor to the user interface, one or morelocations of a subset of the plurality of slots of the predeterminedarea where the at least one article should be loaded into, in responseto receiving the signal; receiving a load confirmation signal at theprocessor through the user interface, the load confirmation signalindicating that the at least one article has been loaded into the one ormore locations of the subset of the plurality of slots; and subsequentto receiving the load confirmation signal, using the processor, causingthe article dispensing machine to automatically move the at least onearticle from the one or more locations of the subset of the plurality ofslots to a non-removable storage unit; and transmitting, from theprocessor to the user interface, one or more locations of a subset ofthe plurality of slots of the predetermined area where the subset of theplurality of articles should be removed from, in response to receivingthe signal; (b) using the processor, causing the article dispensingmachine to automatically move a second subset of the plurality ofarticles from a consumer inventory management section of thenon-removable storage unit to a predetermined area of the articledispensing machine, wherein the predetermined area is reserved fornon-consumer inventory management, the second subset targeted forremoval from the article dispensing machine, the step comprising:receiving, at the processor, a list identifying the second subset of theplurality of articles, the second subset targeted for removal from thearticle dispensing machine, wherein the plurality of articles compriseconsumer goods articles; receiving, at the article dispensing machine,at least one article from outside of the article dispensing machine;identifying if the at least one received article matches one of thesecond subset of the plurality of articles, using the processor; and ifthe at least one received article matches one of the second subset ofthe plurality of articles, using the processor, causing the articledispensing machine to automatically move the at least one receivedarticle to the predetermined area of the article dispensing machine,wherein the predetermined area is reserved for non-consumer inventorymanagement; using the processor, causing the article dispensing machineto automatically move one or more of the second subset of the pluralityof articles from the consumer inventory management section of thenon-removable storage unit to the predetermined area.